RAGHAVENDRA CONSTRUCTION COMPANY Vs. GENERAL MANAGER SOUTHERN RAILWAY

JUDGEMENT

(1.) This intra Court Appeal arises out of the order dated 10.11.2009 made in O.P. No. 573 of 2009, whereby the learned single Judge has set aside the award of the Arbitral Tribunal in so far as it relates to interest pendente lite under Claim No. 11.

(2.) The facts in nutshell are as follows:

(3.) Challenging the award of interest in claim No. 11, Railways filed Petition under Section 34 of the Arbitration and Conciliation Act, 1996. The award was challenged on the ground that under Clause 16(2) of General Conditions of Contract, no interest was payable on the amounts due to the contractor and that under Section 31(7)(a) of the Arbitration and Conciliation Act, 1996, the Arbitral Tribunal is entitled to award interest only if there was no contract to the contrary.